‘‘The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand.’’

Mr Stevens added that the rates easing cycle appeared to have ‘‘an expansionary effect on the economy’’ and that ‘‘further such effects can be expected to emerge over time’’.

Macquarie Bank senior economist Brian Redican said the bias towards lowering rates further suggested the RBA was ‘‘not getting carried away with some of the most recent stronger data points.’’

‘‘They are waiting to see the whites of the eyes before shooting again,’’ said Mr Redican.

‘‘Over the last month, we’ve had some more positive data in Australia, so the Reserve Bank had the option of becoming more upbeat in terms of its statement, and it’s chosen not to do that.’’

The Australian dollar fell after the RBA's decision. A few minutes after the announcement, the currency was at $US1.045, down from $US1.046 shortly before the bank’s decision was announced.

Citi senior economist Joshua Williamson said the April statement was, as he had expected, a "carbon copy" of last month's statement.

He added that if the Reserve Bank chose not to cut again at its next one or two meetings, it would be unlikely to lower rates this year.

"We think the wind of opportunity is closing as more time goes by. So if we don’t see a rate cut in the next month or two, we think it’s highly unlikely we’ll see one further out. This is the bottom of the cycle."

Meeting expectations

The decision matched financial markets’ expectations. The markets were pricing in a 5 per cent chance of a fall in rates, and a 72 per cent chance that a 25 basis points cut could take place this year.

A string of recent economic data pointing to improving consumer sentiment and a lift in the housing market, as well as better-than-expected jobs data for February, meant the Reserve Bank was unlikely to cut rates further today.

The easing cycle has seen the central bank take 175 basis points off the cash rate since November 2011.

Matthew Johnson, interest rate strategist at UBS, said he was not expecting any further cuts for the remainder of 2013.

"They are dovish but it's not much different from last month's statement," he said. "Their ability to drop the easing bias is limited by the strength of the currency. I think the RBA is on hold for the rest of the year."

There are opposing views, however. Bank of America Merrill Lynch chief economist Saul Eslake said the markets' bullish view of the recent spate of positive economic data was premature and another rate cut as — soon as in June — was possible.

"I still think that the next rate cut is more likely than not, and certainly more likely than that the next movement is upwards."

Strong Australian dollar

One of the factors for the Reserve Bank in its rate-setting decisions remains the high Australian dollar, which has hurt the export-orientated sectors of the economy.

While Mr Stevens continued to point out the strength of the Australian dollar despite a fall in export prices, he also added a new emphasis — that it had "risen recently", Westpac chief currency strategist Robert Rennie said.

Mr Rennie said as the RBA had noted, economic headwinds in Europe and US still remained, which meant the dollar would continue to remain a safe haven for investors.

Fresh data

Figures released today by RP Data and Rismark showed that home prices rose 1.3 per cent across Australian capital cities in March. This means housing values have grown by 4.7 per cent since the market was at its lowest in May last year.

Mr Rennie said the manufacturing data released this morning pointed to continued weakness in that sector.

"Today's AIG [purchasing managers' index] ... was showing clear signs of deterioration on the business side. When I look at the orders sub-component, the orders dropped to lows last seen in 2009 and the ratio of orders to inventories dropped to lows last seen in June 2009," Mr Rennie said.

"So it's very clearly the case that manufacturing in Australia is suffering."

Some economists have warned that a substantial shift towards non-mining-led economic growth has not yet occurred and the Reserve Bank was likely to keep the door open to further rate cuts if they were needed.